According to a report by Frost & Sullivan, some Asia Pacific aviation companies are considering RFID to raise efficiency levels, reduce wastage and increase security in an effort to stay airborne in the face of a major economic downturn.
According to Frost & Sullivan more than 20 Asia Pacific airlines are filing for bankruptcy. The industry lost more than 180,000 jobs and $5.8 billion in 2008 alone and is anticipated to lose another $2.5 billion in 2009.
Some airlines are hoping for an answer in RFID, which has proved to be a cost-effective solution to baggage handling in several pilot runs conducted by major airlines, including American Airlines and Delta.
A recent report from Frost & Sullivan on the Asia Pacific RFID market found that the market earned revenues of $27.3 million in 2008 and estimates this to reach $188.3 million in 2015.
However with the current credit crunch, a few airlines are hesitant to jump on board with RFID because of the cost of implementing an RFID-enabled baggage handling system that can be integrated successfully with existing bar code systems.
According Frost & Sullivan Research Analyst Richard Sebastian, airlines may find more use for RFID beyond the luggage counter: “RFID can be used to detect a diverse range of environmental parameters such as temperature, humidity, and vibration; thus increasing the possibilities of this technology’s usage within the aviation industry.”
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